How to Start Your Own Business
Running your own business is a stressful but good career and life choice. It demands your time and focus. Start by expecting to live your work until it is established, so it can get off the ground. There are many different opinions about how to start a business. Below are some basic ideas and guidelines to get you started.
Having An Idea
Come up with an idea.You will need an idea for a business before you do anything else. You can conduct a market research to have a clear image. This should be something you are passionate about, since your new business will consume a great deal of your time and money.
- Come up with business ideas by identifying things people need and are willing to pay for, that isn’t provided in your area, or online, or which you can provide better than anyone else.
Consider if it is possible.Before going too far, think about how plausible your idea is. Is it something that people would actually pay for? Will it turn enough of a profit to be worth spending your time to do it? You will also need to be sure that it is possible to put into action. While it would be great to have a computer which makes food magically appear out of thin air, this is simply impossible (unless you’re Patrick Stewart.)
Be sure it’s unique.Whatever your idea is, be sure it’s as unique as possible. This will help you eliminate or significantly combat competition, which will make your business more successful. Simply putting a small spin on a currently existing product (making blue Red vines or something like that) is not usually enough to build a business on, so push the envelope!
Making A Business Plan
Determine your cost of operation.You will need a solid business plan to present to any investors and the best place to start would be with determining your basic cost of operations. This will outline and help you determine how much money is needed to produce the product or offer the service you intend to offer or produce. It includes production costs, shipping, taxes, worker’s wages, rent for workspace, etc.
- Knowing your cost of operations will be vital to determining if your business will be profitable, since you will need to make more than this baseline in order to remain in business.
Determine your potential market.Be realistic. How many people will realistically use your business? How much will they pay to use your services? If either number is too small in comparison to how much it will cost you to stay in business, then you should reconsider or change your plans.
Determine impediments.You will need to plan ahead for all of the problems which can get in the way of running a business.
Making A Marketing Plan
Write up a budget.Once you have a general idea of how much money you have to work with, write up a budget for marketing which indicates how much money you have available to spend on advertising.
Create ideas fitting your budget.Once you know how much money you have, research the costs of different types of marketing and come up with ideas which fit those methods and are effective for the price range. If you have a lot of money to spend on marketing, for example, you can consider shooting a commercial. If you have almost none, you’ll want to think about ways to use social media effectively, which is very effective for requiring little money.
Plan timing and location of marketing.Once you know what kind of marketing you intend to do, think about the most effective places to advertise and what time of day, month or year are going to work best to reach your target market.
- You will want to be sure that you are using marketing which is appropriate to the type of people you expect to be interested in your product or services. There is little point in using social media to, for example, advertise a 55+ only cruise line. Meanwhile, if you’re advertising for your new dance club, a printed newspaper is probably not going to be your best bet. There is also no point in advertising a business only available in Chicago to people in Seattle, so consider physical location as well.
- If your services are seasonal you will want to consider what the best time of year would be to advertise. Also, television advertisements will need to be timed so that the right demographics will be watching when they air.
Talk with your bank.Talk with a bank with whom you already have a positive relationship. Ask about what kind of business start-up loans they offer and how they can benefit your business. By using a bank you already know, the bank will have easy access to your financial records and will be more confident in investing with you.
Get local investors.If the bank loans will not be enough, look into local investors. There may be a local business tycoon or other similarly wealthy person who would have a vested interest in seeing you succeed. Research people in your area who may have the funds and motivation to help you.
Seek venture capitalists or angel investors.Angels are high net worth individuals and venture capitalists are companies. Both fund a promising high risk venture for a stake (partnership) and often bring experience, management expertise and contacts to the table. They usually work through a network or association.
Approach friends and relatives.People who know you for a long time are most likely to have faith in your ability and intentions. These are also the people who are likely to stand by you if the going gets tough in the initial stages of your venture or you need to raise more money. However, make it clear the money is intended as risk capital and they might lose it completely or may not be returned in the short term.
Use crowd-funding.If you still can’t drum up enough funding, use websites to raise the money you need to start. These funding sources have several benefits: you will not have to pay interest on the money you get (since it is money which is used to provide actual product or services) and it will help you not only gauge interest in what you have to offer but also help you build a customer base. You’ll start business with hundreds or thousands of customers already lined up and ready to tell other people about what you have to offer.
Report.No matter which source you raise funds from, be sure to provide key operating, strategic and accounting information to your financiers periodically, usually twice a year. It's a good idea to hold a board meeting if everyone can physically attend. If not, do it via teleconference.
Get an office.You will need a space from which to run your business. This can be a home office if you require little space and will not have employees, or it can require an entire workshop or warehouse. Look at renting in a low cost neighborhood or business incubators instead of a fancy address. Some universities make space available at a low rent for new business ventures based on an innovative scientific idea. It depends on what you will be doing and how big you intend your business to be. Make sure the space is coded and legal for how you intend to use it and within your budget.
Purchase equipment.Purchase all of the things you need to start work. This can mean mechanical equipment, computers, telephone, or craft supplies. It all depends on what you are doing. Try to purchase from business supply companies as they will have significant discounts. If you are short of capital, lease or rent is an attractive option too, so as not to block your funds.
Create a records system.From doing taxes to figuring out why you’re mysteriously missing ,000 to searching through customer records to find out if Mrs. Jones did in fact pay her bill, you’re going to want a good records system to help your business run smoothly and efficiently. Invest in file cabinets, labels and digital records software to keep you organized and on top of things.
Building a Customer Base
Make use of marketing and PR.You will want to reach out to potential customers in ways that make them want to use your business. This is especially important when you are first starting before you have an established, regular customer base.
- Advertise in a way that catches customers attention at a minimum and hopefully goes beyond to capture their imagination. Be creative and appeal to the right aspects of the customers you want to use your business.
- Offer free samples of what you do to the right people, in order to get people saying good things about what you have to offer. Word of mouth (i.e. good PR) is the best way to attract new customers. If you get bad reviews or negative feedback, respond positively and fix the problem. People will be much less judgmental about mistakes if you’re willing to fix them.
Use a little old fashioned networking.Go to conferences, charity galas, meetings with complementary businesses and anywhere where your customers are likely to be highly concentrated. In other words: get out in public and interact with people. Use your friend's connections to meet people who may be able to help you. This kind of interaction is very important for starting a business. You can’t exist in a vacuum after all.
Have great customer service skills.Be good at interacting with people. Practice reading between the lines of what people say. Learn how to meet needs they didn’t know they had. Figure out how to make people happy. Be charming. Most importantly, be humble. The customer may not always be right but you need to be able to let them think they are.
Have a website.The world has moved online. Any business that wants to survive the next ten years is going to have a website. People will use it to contact you, find your location, learn your operating hours, ask you questions, make suggestions, and maybe even buy your products or services. In having a website and services which are available over the internet, you will be able to expand your service area out across your region or even the world.
Require payment.Don’t let people take advantage of you. Require payment within a specific window of time (whatever is appropriate for what you do). Invoice people as soon as you possibly can. If someone is late in a payment, talk to them. If you ignore these problems hoping that they go away, you will find yourself working for free and your business in the tank.
Take credit cards.Very few people consistently pay for products or services with cash any more. It will be much easier for your business, as well as records keeping and accounting, if you accept credit and debit cards. If you want to save yourself ridiculous fees or keep your business more mobile, consider using the Square. This device plugs into a smartphone or tablet and lets you swipe customer’s card.
Set up an online system.If you plan to have products for sale online you will need to make sure to set up an accord online payment system. Services like PayPal make this incredibly easy. Research to find out which method is best for you. However, make sure that whatever system you use is secure. You don’t want either your information or your customer’s information to be hacked or taken advantage of.
QuestionDo I need experience to start a business?wikiHow ContributorCommunity AnswerNo, though it will help. Make up for your lack of experience by researching as much as you can about the type of business you'd like to start.Thanks!
QuestionWhat are some tips for starting a business selling handmade products?wikiHow ContributorCommunity AnswerAlways start small, meaning start online, and only produce what you are sure you can sell. You can always make more if demand increases. Start by marketing yourself on social media, and start a virtual store front on a site like Etsy or eBay.Thanks!
QuestionCan a teen start a business?wikiHow ContributorCommunity AnswerYes. You have to have a good idea and be planned and prepared. And you need a start up capital - specifically from someone else willing to invest.Thanks!
QuestionDo I need to have a college degree to start my own business? And if so, what major would it be?wikiHow ContributorCommunity AnswerThere is no formal education required to start your own business. Many successful business owners created their companies when they had little or no formal education. There is still value in formal education and, in addition to business classes, many schools now offer courses on innovation and entrepreneurship.Thanks!
QuestionHow do I start a business when I'm young?wikiHow ContributorCommunity AnswerIf you want, you can try to sell some stuff at school or ask your parents if there is some extra space in the house to make a little office or even a shop.Thanks!
QuestionHow do I make my name of the company official?wikiHow ContributorCommunity AnswerObtain a trademark, and perhaps speak to a patent lawyer.Thanks!
QuestionHow can I promote my business?wikiHow ContributorCommunity AnswerSocial media is the best way to promote your business on the cheap. Beyond that, it really depends on what your business is. Roadside advertisements are a great way to attract consumers, but not particularly effective if you are a wholesale company. The first step is to identify your clients, and figure out the best way to reach them, for consumers, the best ways are social media, road side adds, TV commercials, and good customer service has been shown to get more word of mouth. For a wholesale or investment business, the best ways to promote vary greatly, so just identify your clientele and think about how other businesses advertise to them. Also, never be afraid to self promote.Thanks!
QuestionWhat are my options for setting up my business to accept credit cards?wikiHow ContributorCommunity AnswerPaypal, Stripe, a basic card reader system, etc. There are so many payment gateways out there, just google them. Don't forget bitcoin and other cryptocurrencies too.Thanks!
QuestionCan I start a huge business, like owning a hotel, or build up?wikiHow ContributorCommunity AnswerYou can; however first you have to make sure you have the right legal permissions in case you have to build, and some others are needed to own a hotel. You might want to check with a lawyer before starting. At the same time building an hotel or buying one requires a huge amount of money, since you have to build the building, hire people that will work for you, and do different jobs according to how big the place is. You will most likely need to start small and build your business to be larger.Thanks!
QuestionWhat will help me to start a business when I'm 10 years old?wikiHow ContributorCommunity AnswerAll you really need is permission from your parents -- and a good attitude. Some cities require a special license to sell items inside the city limits, so ask your parents if your city enforces that rule. Then you're pretty much set to start your business!Thanks!
My idea is to provide a service that is fairly unique. How to I protect my idea from others that may want to copy my idea?
To get knowledge of business if one likes to do MBA can he/she can do to learn about business management?
Hello if you may put this in the comments for all the others to see A good tip for starting your own business is eliminating all your competition if you know what I mean, my business is a cult
What are some good websites that help you create your own business?
The business that I want to start is connected to designing, so should I go to business school or school of interior design?
- Make sure your product/service is appealing for the public area and community not just in your perspective if not how can you make it more appealing? Be sensible.
- Ask people you know that run a home based business. They could help you get started.
- Make sure your business looks professional and is attractive to the eye. Have a professional logo, branding that is consistent and a professional website to support it. There are several groups that will help you with all this, for example. Startyourownbusiness.net.au and vistaprint.com.au.
- Recognize that getting your business off the ground will take time. Most businesses don't become either profitable right away or plan for that in your personal life too. You will be making sacrifices to be your own boss.
- Use free resources. Your local library contains numerous useful references regarding incorporation, writing business plans, marketing, as well as information specific to your industry. The Small Business Association, Chambers of Commerce, AMEX Small Business website, associations for your industry, associations by ethnicity...all of these offer training, materials, networking and sometimes financing. Another good option is , a group of retired executives who provide business start-up advice.
- When hiring, make sure you have an in-depth review and interview of the worker. Make sure you get their real information, passports, ID, former work, license and many others that they are truly honest and they are dependable.
- Make paying convenient and affordable. Accept credit cards, offer monthly payment plans, promote product with buy one get one free offers or sale prices.
- When coming up with a name, slogan, service etc. ask people's opinions on it.
- Ask your parents for help.
- Ask your friends, relatives, and colleagues and plan something with help of your good wishers and supporters.
- Have original ideas. If you are doing something software related the key is simplicity, originality and function. You will want to have all the features a normal software has, along with more things for a user's convenience.
- Make sure to give new employees hands-on training to make sure they are comfortable with the job.
Sources and Citations
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